LINE Pay, Merpay, NTT DOCOMO, KDDI to form business alliance to spur cashless payments
Through this business alliance, the four companies will promote the introduction of their mobile payment services to stores and businesses.
New collaboration regarding cashless payments is about to emerge. LINE Pay Corporation , Merpay, Inc., NTT DOCOMO, INC., and KDDI Corporation today announce the signing of a letter of intent for a business alliance to make cashless transactions more widely available.
Through this business alliance, the four companies will seek to promote the introduction of their mobile payment services, LINE Pay, Merpay, d Barai, and au PAY to stores and businesses.
Each company plans to make their own app capable of handling QR code scanning and payments for the other partners’ merchant-presented mode (MPM) code payment services. Businesses only need to set up a QR code from any of the services in order to start accepting payments from users of all four. This is set to lower the burden of implementing a new system and enabling acquisition of many potential new customers.
Users are also poised to benefit from being able to use their chosen payment method at more stores.
By bringing the four companies and their large userbases together, the companies expect the alliance to create an even more convenient experience for both consumers and merchants, and also anticipate that this will help accelerate the use of cashless payment services in Japan.
In addition, KDDI has joined the Mobile Payment Alliance (MoPA), an alliance of merchant stores.
This happens as the Japanese government is promoting cashless transactions, in light of the upcoming consumption tax rate increase planned for October 2019. On the other hand, the increasing number of businesses entering the mobile payment market has resulted in an overwhelming flood of services. The countless options have resulted in a larger burden and more complexity for merchants, and is confusing users about which service they should opt for.
Given this situation, LINE Pay and Merpay formed a business alliance and established the merchant alliance “MoPA” in March 2019, for the purpose of providing a more convenient mobile payment experience for both merchants and users. DOCOMO also agreed with the goals and purpose of the alliance and joined in June 2019.
MoPA aims to continue to expand its partnerships by encouraging other payment service providers supportive of the alliance’s goals and purpose to join.